GreenTree(US:GHG)2024-11-25 11:10Financial Performance - Total revenues decreased by 22.5% year over year to RMB357.0 million (US$50.9 million) in Q3 2024[6] - Net income was RMB65.2 million (US$9.3 million), down from RMB117.4 million in Q3 2023, representing a year-over-year decrease of 44.5%[6] - Adjusted EBITDA (non-GAAP) decreased 32.1% year over year to RMB122.5 million (US$17.5 million)[6] - Gross profit for Q3 2024 was RMB151.8 million (US$21.6 million), a 28.8% year-over-year decrease, with a gross margin of 42.5%[37] - Income from operations in Q3 2024 was RMB106.4 million (US$15.2 million), down from RMB137.8 million in Q3 2023, with a margin of 29.8%[38] - Net income for Q3 2024 was RMB65.2 million (US$9.3 million), compared to RMB117.4 million in Q3 2023, resulting in a net margin of 18.3%[40] - Adjusted EBITDA for Q3 2024 was RMB122.5 million (US$17.5 million), a year-over-year decrease of 32.1%, with an adjusted EBITDA margin of 34.3%[44] - Core net income for Q3 2024 was RMB93.5 million (US$13.3 million), a year-over-year decrease of 26.6%, with a core net margin of 26.2%[45] Revenue Sources - Total revenues from restaurants were RMB70.6 million (US$10.1 million), a 42.0% year-over-year decrease[14] - Total revenues from franchised-and-managed hotels and restaurants were RMB169.7 million (US$24.2 million), a 10.7% year-over-year decrease[21] - The average daily sales per store (ADS) for restaurants was RMB4,891, a decrease of 25.6% from RMB6,570 in Q3 2023[10] Operational Metrics - The average daily room rate was RMB181, a decrease of 6.0% from RMB192 in Q3 2023[6] - The occupancy rate was 74.6%, down from 81.2% in Q3 2023[6] - The number of hotels in operation was 4,336 with a pipeline of 1,085 hotels contracted for or under development as of September 30, 2024[6] - The company reported a total of 307,001 hotel rooms in operation as of September 30, 2024, compared to 316,461 rooms in the previous year, indicating a decrease in total room count[81] - The revenue per available room (RevPAR) for leased and owned hotels was RMB 21,219.60, up from RMB 19,517.00 year-over-year, representing an increase of 8.7%[80] Cost Management - Total operating costs and expenses for Q3 2024 were RMB324.2 million (US$46.0 million), reflecting the impact of decreased revenues[26] - Operating costs for the third quarter of 2024 were RMB205.2 million (US$29.2 million), a 17.2% year-over-year decrease[28] - Hotel operating costs decreased to RMB152.3 million (US$21.7 million), a 4.8% year-over-year decrease, primarily due to lower staff-related costs from the disposal of L&O hotels[28] - Restaurant operating costs in Q3 2024 were RMB53.4 million (US$7.6 million), a 39.2% year-over-year decrease, attributed to the closure of L&O stores[29] Cash and Assets - As of September 30, 2024, total cash and cash equivalents were RMB1,883.9 million (US$268.5 million), an increase from RMB1,737.2 million as of June 30, 2024[52] - Total current assets increased from RMB 1,626,759,605 on December 31, 2023, to RMB 1,885,742,262 on September 30, 2024, representing a growth of approximately 15.9%[68] - Cash and cash equivalents rose significantly from RMB 765,547,547 to RMB 1,513,020,988, indicating an increase of about 97.5%[68] - Total liabilities decreased from RMB 3,586,765,383 on December 31, 2023, to RMB 3,508,917,338 on September 30, 2024, reflecting a reduction of approximately 2.2%[68] - Shareholders' equity increased from RMB 1,480,033,495 to RMB 1,590,895,436, marking an increase of about 7.5%[68] Strategic Initiatives - The company maintains a diverse brand portfolio across various segments of the hospitality industry, aiming to strengthen client relationships through superior system management and a broad booking network[64] - GreenTree's future growth strategies include expanding its market presence and enhancing its operational capabilities through new technology and product offerings[65] - The company plans to focus on market expansion and new product development to drive future growth[79] - Strategic acquisitions are being considered to strengthen market presence and competitive advantage[82] - The management remains optimistic about achieving long-term growth targets despite market challenges[82]